Watkins Resources faces a smooth annual demand for cash of $1.53 million, incurs transaction costs of $78 every time the firm sells marketable securities, and can earn 4.0 percent on its marketable securities.
What will be its optimal cash replenishment level? (Enter your answer in dollars not in millions. Round your answer to 2 decimal places.)
Optimal cash $
HotFoot Shoes would like to maintain its cash account at a minimum level of $35,000, but expects the standard deviation in net daily cash flows to be $5,000, the effective annual rate on marketable securities to be 7.5 percent per year, and the trading cost per sale or purchase of marketable securities to be $300 per transaction.
What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Optimal cash return point $